KARACHI: For the second day, stocks were battered on account of lack of clarity over the widely anticipated financial assistance package from China. The KSE-100 index receded 535.44 points (1.29 per cent) — loss of about the same points as yesterday — and closed at 40,958.53.
The market opened weak with the index in red by 62 points as uncertainty weighed down on investor sentiments. Most took short-term view on rumours of a deferred assistance by China ‘till further talks’.
By midday, traders’ anxiety reached a high pitch, believing that the country would have to ask for a bigger bailout package from the International Monetary Fund with the accompanying stringent conditions.
It prompted investors to dump stocks which sent the index spiralling to intraday low by 738 points. Mutual funds were again the lead sellers who reduced positions in cyclical stocks worth $1.92 million, but banks and insurance companies deployed reserve cash to absorb the selling.
Cement sector took the major beating, scrapping 100 points from the index. Maple Leaf, DG Khan and Cherat Cement all closed in negative for the second consecutive day. Banks caused a loss of 166 points as FIA director revealed that the majority of Pakistani banks data had been hacked. Investors, already nervous over the previous week’s news relating to $6m stolen through cyberattacks, decided to ditch banking stocks.
The volume rose 8pc to 230m shares while the traded value was slightly up to Rs9.67 billion. Stocks that contributed significantly include Pak Elektron, Engro Polymer and Chemicals, Lotte Chemical, K-Electric and Shabbir Tiles and Ceramics, reflecting 35pc of total turnover.
Scrip-wise, major decliners were Habib Bank, down 2.43pc, Oil and Gas Development Company 1.76pc, Bank Al Habib 3.07pc, Lucky Cement 2.48pc and United Bank 2.08pc, taking away 193 points. On the flip side, Dawood Hercules, up 1.32pc, Habib Metro 1.42pc and Indus Motor Company 1.43pc added 23 points.
Published in Dawn, November 7th, 2018
